A Friend of Yours Is Trying to Develop an Index

question 30

Multiple Choice

A friend of yours is trying to develop an index to reproduce respondents' patterns of responses.You tell your friend to:

• A)construct a Guttman scale.
• B)construct a Likert scale.
• C)construct a Thurstone scale.
• D)construct any one of the above.
• E)it cannot be done.

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Definitions:

Leverage Ratio

The leverage ratio is a financial metric indicating the level of debt used by a business to finance its assets, often used to assess financial risk.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, typically including the balance sheet, income statement, and cash flow statement.

Tax Rate

The percentage at which an individual or corporation is taxed by the government on income or profits.

ROA

Return on Assets, a financial ratio that indicates how efficiently a company is using its assets to generate profit.